July 27, 1999
AMERIPATH, INC. ANNOUNCES 1999 SECOND QUARTER RESULTS
Riviera Beach, FL, July 27, 1999 - AmeriPath, Inc. (Nasdaq:
PATH), the nation's leading integrated physician group
practice and laboratory management company focused on
anatomic pathology services, today reported its results
for the quarter and six months ended June 30, 1999.
Net revenue for the quarter ended June 30, 1999 was
$55.4 million, compared to $40.8 million for the second
quarter of the prior year, an increase of 36%. Same practice
net revenue for the second quarter of 1999 increased
by $1.9 million, or 5% over the second quarter of the
prior year. The remaining increase in net revenue of
$12.7 million resulted from the operations of practices
that were acquired after June 30, 1998. Net income for
the second quarter of 1999 was $5.7 million, or $0.26
per share, compared to $4.5 million, or $0.22 per share,
for the same period of the prior year.
For the first six months of 1999, AmeriPath reported
net revenue of $107.7 million, an increase of 37% from
the $78.8 million reported for the same period in 1998.
Same practice net revenue for the six month period increased
by $4.0 million, or 5%. Net income for the 1999 period
was $11.0 million, or $0.51 per share, compared to $8.3
million, or $0.40 per share, for the same period in 1998.
Cash flows from operations for the first six months of
1999 was $19.1 million, or 18% of net revenue, compared
to $9.6 million, or 12% of net revenue, for the same
period of the prior year. Annualized net revenue per
pathologist full-time equivalents continues to be in
excess of $1.0 million. Diluted weighted average number
of shares outstanding for the six months ended June 30,
1999 were 21.6 million, compared to 20.6 million for
the same period in 1998.
James C. New, Chairman, President and Chief Executive
Officer of AmeriPath, commented, "The Company's second
quarter produced strong earnings and cash flow. These
results once again outperformed the consensus of analysts'
estimates and our internal budgets. EBITDA for the six
months was $30.4 million, or 28.2% of net revenue, or
$1.40 per share. In addition, we have initiated and made
significant progress on a number of strategic initiatives,
including the opening of a New York-based laboratory,
evaluation of an enhanced lab information system and
selection of a new vendor for a unified billing system
for all of the company's practices. These initiatives
should ultimately improve our profitability and enhance
the quality of information necessary to effectively manage
our business. Finally, year-to-date, we have completed
six acquisitions with estimated annual net revenue run
rate of $19.0 million adding 26 pathologists. The list
of acquisition candidates and prospects remains strong."
AmeriPath, Inc. is the nation's leading integrated physician
group practice and laboratory management company focused
on providing anatomic pathology services to physicians,
hospitals, national clinical laboratories and managed
care organizations. The company presently operates in
twelve states and employs 256 physicians that provide
medical services through outpatient pathology laboratories,
hospital inpatient laboratories and outpatient surgery
centers.
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This release contains certain forward-looking statements
regarding AmeriPath, including its operations and prospects.
Past performance is not necessarily indicative of future
results. In addition, AmeriPath's actual results could
differ materially from the results anticipated in these
forward-looking statements as a result of uncertainties,
including risks relating to demand, pricing, government
regulation, payments and reimbursements, dependence upon
contracts and pathologists, acquisitions, integration
of acquired practices, the market for pathology services,
competition, and other factors identified in AmeriPath's
filings with the Securities and Exchange Commission.
